That war is a business is not something anyone is unaware of at this point. Intel, the well-known chip manufacturer, could reach a billion-dollar agreement with the United States to produce components for military use. The investment could amount to nearly 53 billion dollars, and part of the funds would come from the CHIPS Act that Biden signed into law in 2022.
As of today, the vast majority of chips and other components used in US military applications come from Taiwan, a country under threat of invasion from China. To address this issue, the CHIPS Act was established to reduce the United States’ dependence on imported hardware.
The United States must scrutinize its moves carefully. Multiple military projects rely on components manufactured by the Asian country, leading to various challenges. By producing the hardware domestically, it becomes much easier for China to understand the equipment at the disposal of the American nation.
The news of this possible agreement with Intel coincides with the recent announcement of a new injection of funds by the Biden administration into the semiconductor industry. Specifically, the Department of Defense will allocate around $238 million to establish eight centers in the country to promote research and innovation in the sector.
If everything moves forward, Arizona would also see a new manufacturing plant (which would be built next to one of Intel’s current complexes) that could cost between $3 billion and $4 billion.
In a context of growing global tension, the United States aims to equip its military with more computing power than ever before.
